Cotton Price Crazy &Nbsp; Fabric Enterprises Change

A few days ago, the head of a cowboy business in Xintang, Guangdong, took the initiative to contact reporters. The first thing he came up with was that this year's textile business is very difficult.

After careful chat, the reporter realized that the reason why he sent such a sigh was that he had plunged wildly. Cotton price Some enterprises are caught off guard.

In fact, through many communication with the responsible person, the reporter has got some understanding of the situation of the enterprise. In the past two years, the company has done a lot of work in improving product quality and establishing brand image. Last year, the Ministry of foreign trade was set up to open up foreign markets. It should be said that this is an active and positive enterprise, and the cotton price faced by enterprises is unstable, which is also an unavoidable industry situation for other peers. What are the real feelings of the current fabric enterprises? What actions do they take to face the adverse effects of cotton prices?

Downstream orders are small.

Since the second half of last year, cotton prices have been at a high level for a long time. Most textile and garment enterprises dare not venture to buy cotton at high prices, and most of their stocks are in a state of shortage. "Generally speaking, textile enterprises Raw material inventory It will last for about 2 months, but last year cotton prices rose, and a large proportion of textile enterprises reduced their storage capacity and reduced the storage period to 20 days. Xintang cowboy business person in charge told reporters.

Then, cotton prices have dropped sharply in recent years. Will textile enterprises take this opportunity to increase their inventory? Journalists have learned that although many textile companies have already reduced their inventories before high cotton prices, they still need to consume high priced cotton in advance before buying new cotton. At this stage, more companies will choose to keep a close watch and avoid losing inventory due to the downward trend of cotton prices.

Spinning and weaving enterprises worry that cotton prices will continue to fall and they dare not rush to buy. Fabric buyer 。 It can be said that at present, this wait-and-see sentiment has been transmitted from the upper level of the textile industry chain, and because of the control of profits, many enterprises have slowed down the order.

The cowboy enterprise official told reporters that because the company has a considerable area of raw material base in the cotton producing areas in China, the cotton needed by the enterprises is basically supplied by the base, so the impact of raw material prices is not very obvious. Because of the rapid price change and large drop in prices, many customers are relatively conservative when placing orders. "Although the real demand customers will still place orders, most of them are small bills, urgent orders and few orders."

Seeking stable relations with the upper and lower reaches

Cotton prices surged and plummeted. This kind of ups and downs, unstable industrial environment is not what textile companies would like to see. "When the price rises, it will be better. Customers are afraid to continue to rise. They will place the order quickly. When they fall, customers will choose to wait and see. Some customers even go to countries where prices are relatively stable and cheap. An analysis of the head of a yarn dyed weaving enterprise in Fujian said, "no production is started, skilled workers will be lost, and when the market is good, they will not be able to recruit workers. If they start production, they will basically lose their business. The price of cotton yarn is even lower than that of cotton."

When cotton prices rose last year, some people made enough money, and some of them lost their blood. Now, cotton prices have gone up and down. It can be seen that cotton prices rise, from cotton, cotton yarn, cotton cloth to clothing, home textiles and other end products, prices are gradually downward conduction, but the lower the price range is lower. And this new round of cotton prices fell, the profit margins are also narrowing. In fact, the sharp rise and fall will cause the upstream enterprises to face greater costs and market risks and make the downstream enterprises difficult to survive. Cotton prices rose more than 100% last year, and it is not too easy to raise prices for terminal clothing products.

In fact, when communicating with enterprises, journalists can clearly feel that they will not be pleased by short-term profits. Most of the forward-looking companies choose to tighten the nerve of "risk awareness". On the one hand, they hope that the introduction of relevant national policies and measures can stabilize cotton prices. On the other hand, they also strive to establish a stable balance of interests and a mutually beneficial and stable relationship with the upstream and downstream in an unstable environment. The closer the relationship with customers is, the higher the risk coefficient of enterprises is.

Alternative measures pushed out

Like the short-term response measures taken by the enterprises when cotton prices rise, most of the fabric enterprises say that the price of cotton yarn has dropped rapidly and has fallen greatly. What the enterprises need to do is to deliver fast. At present, orders for short term, with smaller orders, are relatively easy to control. Of course, enterprises in the short term to choose such passive measures, more or less helpless.

In fact, in communication with enterprises, they prefer to talk about the strategic decisions that enterprises have long adhered to. In their view, it is precisely because of this insistence that enterprises will take the initiative in the face of unfavorable factors. Generally speaking, these long-term plans can be divided into two main directions: one is to improve product quality, and the other is to ensure the profit margins of enterprises with high performance price ratio products; the two is to enhance the sense of service and establish a stronger partnership with the upstream and downstream. {page_break}

The head of Xintang cowboy enterprise said that at present, the enterprise developed the new denim fabric blended with cotton and Tencel, bamboo fiber, polyester, wool and other raw materials by using the blending technology, and enhanced the washing and finishing process of the cowboy fabric. And how to better connect with downstream garment brands has become the main direction for the current fabric enterprises.

The above are short-term and long-term plans formulated by enterprises from their own conditions, and the prices of raw materials they expect are stable, and more need for timely introduction and implementation of relevant state departments' policies.

In March this year, the policy of "temporary cotton purchase and storage plan" was put forward in 2011, and it was proposed to purchase cotton in Xinjiang, Shandong and other 13 provinces and autonomous regions at a minimum purchase price of 19 thousand and 800 yuan per ton. Insiders believe that the minimum protective price has a certain effect on stabilizing the market, but it can not fully mobilize cotton farmers' enthusiasm for planting cotton. It is foreseeable that if this decline continues, the enthusiasm of cotton growers will be reduced, resulting in a reduction in production. The next round of cotton prices will probably rise again and again.

"The stability of cotton production is the foundation for the stability of the whole industrial chain. Large fluctuations in output will drive the price fluctuation of cotton follow-up products. Government departments should intensify efforts in cotton seed subsidy and temporary storage system to keep cotton prices basically stable. An industry expert analyzed.